WorksheetsSTANDARD COSTING AND VARIANCE ANALYSIS
Total questions: 10
Worksheet time: 5mins
Which statements NOT TRUE about standard costing?
Standard costing is one of the techniques that manager can use to evaluate and control the performance
Standard costing is a technique which uses standard costs and revenues for the purpose of control
Standard costing compares the actual performance and standard performance to obtain variance
Standard costing uses a contribution margin method as a tools ttramprove efficiency
The situation where the actual cost is less than standard cost called as_______________________
Favorable variance
Unfavorable variance
Adverse variance
Good variance
The formula for the Material Usage Variance is as follow:
(AQ-SQ) SP
(AP-SP)AQ
(AQ-SP)SQ
(AQ-SQ)AP
Who is the best position to influence material usage variance?
Marketing Supervisor
Store Manager
Production Supervisor
Purchasing Manager
The another name of Variable Production Overhead Variance(Expenditure) (VPOH (Expenditure)) is
…………………………………..
VPOH (Volume) variance
VPOH (Efficiency) variance
VPOH (Usage) variance
VPOH (Rate) variance
What are the possible causes of the unfavourable labour rate variance?
Lower rates than planned being paid
Inappropriately high setting of the standard cost
Unexpected overtime
Hiring more unskilled labour
Fixed overhead variance consists of:
Expenditure and volume
Volume and rate
Rate and Usage
Efficiency and volume
The four steps in variance analysis are;
Compute the variance, identify the performance, determine the causes and take action to correct the problem
Compute the variance, determine the causes, identify the performance and take action to correct the problem
Determine the causes, compute the variance, identify the performance and take action to correct the problem
Determine the causes, compute the variance, take action to correct the problem and identify the performance
The __________________________should be relatively small because it is easy to predict.
Labour efficiency variance
Fixed overhead (expenditure) variance
Variable overhead (expenditure) variance
Fixed overhead (volume) variance
What is the possible causes of the favourable material price variance?
Bulk purchasing
Increase in general price
Purchasing material of a higher quality
A. Emergency purchase
